Is the US stock market inhaling or exhaling?

Last week the E-mini S&P 500 opened the week at 1346 and closed the week at 1290.75. That is a weekly drop of 55.25 points.

On the daily chart below, we see technicals showing a very strong trending market with ADX at 50. Looking at the vertical red line you can see the technical trade set-up starting May 3 and 4. MACD is bearish and Stochastics are in deep oversold territory.

Looking at the weekly VIX chart below, you can see where the S&P was trading when the VIX hit 36 and then 42 over the past year. Look at the weekly chart below to see where the E-mini S&P 500 was trading when the VIX was at 16.